$2M spot market transaction canceled as BSP steps up to defend peso

By Eileen Mencias

A $2-million transaction on October 10, 2022 at the spot currency market was cancelled, erasing what would have been an all-time intra-day low of P59.98 against the dollar.

“On October 10, 2022, there was a cancelled transaction between two market participants that was reported after the dollar-peso spot market closed at 4pm,” the Bankers Association of the Philippines said in a statement.

Because of the cancelled transaction, the peso traded only within a tight range of five centavos on Monday, with the peso averaging at P58.994 against the dollar and at P58.99 during the afternoon trade.

If the $2-million transaction was not cancelled, the peso would have averaged at P58.999 that day and at P59.007 during the afternoon trade.

A representative of the BAP initially said “the changes on the data were made due to changes from the Bangko Sentral ng Pilipinas.”

The representative later clarified the statement, recognizing that a trade was cancelled and that the cancellation was approved by the BSP, resulting in changes in market statistics.

“Upon securing Bangko Sentral ng Pilipinas approval, accordant to the BAP USD/PHP Spot Convention (2022), market statistics were updated after 5pm to effect such cancellation,” the BAP said.